Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/724527
American Made 26 Beverage Dynamics • September/October 2016 www.beveragedynamics.com tillers looked overseas for new markets at the same time as the resurgence here, and have found that international growth in some cases has forced allocation of brands in the U.S. Most of the major distillers have in the past fi ve years expanded their pro- duction and aging facilities, but whiskey-making is a long-term project - spirits barrelled in 2016 won't be ready until four years at the earliest to make the legal age limit to be called "Bourbon," for example - and so making reliable projections is like shooting arrows from a moving train. Mostly, distillers are optimistic that the luxury problem pro- vided by simply keeping up with fi lling or- ders will be around for some time. Flavored whiskeys have offered different drinking options for established whiskey consum- ers and attracted more women, Hispanics and African-Americans - groups not tra- ditionally a signifi cant part of the Amer- ican whiskey consumer base. With the return of classic cocktails - a major driver for rye as well as Bourbon, the growth of whiskey bars, and the growing interest in authenticity and heritage when it comes to spirits - American straight whiskey is poised for continued growth. Lately, even bonded whiskeys have returned to numer- ous portfolios, a style that had been reduced to only a handful of brands. A recent twist is one-offs based on pre-Prohibition whiskey styles - Old Forester's latest expression in its Whiskey Row Series is the 115-proof 1920 Prohibition Style. The third release in the series, it marks the brand's continued distillation during Prohibition. Meanwhile, major brands keep growing: Jack Daniel's, the longtime category leader now offering numerous fl avored and higher end iterations, broke the fi ve million case barrier for the fi rst time last year, up 2.9 percent. Almost every other tracked major straight American whiskey surged as well, led in volume by Heaven Hill's Evan Williams (up 15.3 percent to reach two million cases) and Bulleit Bourbon (up more than 39 percent). And while moonshine and corn liquor may not have the allure that they did a few years ago, when the novelty and array of new fl avors made a big splash, some regional strength has kept a cou- ple of brands, notably Midnight Moon and Ole Smoky, chugging along, though the churn of suppliers and brands has continued. "Interest in the whiskey category has never been greater, led by the fl avored and craft whiskey segments," says John Higgins, VP, Jack Daniel's brand director North America. "Based on that interest, there is a desire for more new offerings from their favor- ite whiskey brands. As the world's global whiskey leader, Jack Daniel's will always listen to what our friends want and will con- tinue to deliver them product of the highest quality." NEW TO THE SHELF Meanwhile, something new is always on the launching pad, it seems. For example, Brown-Forman is ex- tending Jack Daniel's Single Barrel with a new Personal Collection program, under which consumers can purchase their own customized barrel of whiskey. Buyers can have the barrel selected for them by the master distiller, receive samples based on fl avor profi les or travel to the distillery in Lynchburg, Tennessee and select their barrel. Barrels destined for the Personal Collection have been exposed to the most extreme temperatures, which creates bolder fl avor and variance from barrel to barrel, Brown-Forman says. Prices start at around $10,000 a barrel. And with this year the 150th anniversary of the Jack Daniel Distillery, the company has released a limited edition commem- orative whiskey to mark the occasion with a suggested retail price of $99.99 for a 1L bottle. "We continue to see consumers looking towards authenticity and heritage in American whiskey," Higgins says. "Just looking at the amount of new entrants to the category and proliferation of whiskey bars and whiskey blogs are examples of the thirst for American whiskey. The trends continue to show American whiskey growing over the coming years and we're hopeful that Jack Daniel's will be at the forefront of that growth. We're seeing growth across the Jack Daniel's family of brands, in particular in our craft and premium expressions, along with our Jack Daniel's Tennessee Honey and Tennessee Fire." "Interest in the whiskey category has never been greater, led by the flavored and craft whiskey segments." —John Higgins, VP, Jack Daniel's brand director North America.